*Quick refresher...Before the iPad has even hit the shelves, Apple managed to throw a wrench into Amazon's eBook plans by forcing Amazon to adopt the 'agency model' for some bigger publishers. In the agency model, the publisher picks the price, sells it in Amazon and Apple's stores, and keeps 70% of the sales. Amazon and Apple get the other 30%.

Previously, Amazon had the wholesale model. It paid a standard price for the books and charged whatever it wanted. Economically, this was worse for Amazon in the short run. In the long run, it would give Amazon more share of the market and better negotiating position on eBooks.